Ottawa announces new rent relief program for businesses hit by COVID-19 closures

The federal government says targeted aid is coming for some businesses hit by closures as a second wave of COVID-19hits parts of the country.

Finance Minister Chrystia Freeland, flanked by the prime minister and other cabinet colleagues, announceda combination of new and previously announced measuresin Ottawa today.

"The difficult reality is that the health measures we are taking to contain COVID-19 mean there are some businesses that simply cannot operate at full capacity, and some are closed down by public health orders. These measures are to support those businesses and to provide a bridge for all of us to the full containment of the virus," she said.

"I want to stress that this is not for everyone. Some businesses are able to work at full capacity despite COVID 19 and they are doing well and that's great."

Freeland said this supportwill include anoverhauled rent relief program, which the governmentsaid will nowallowbusinesses to apply directly for reliefthrough the Canada Revenue Agency until June 2021.

The old program, which was meant to ease the pressure on businesses hit by the pandemic by covering a portion of their rent, expired last month. It wasroundly criticized by businesses because tapping into the program depended on buy-in from landlords, who were under no obligation to participate.

According to a press release from Finance Canada, the new rent subsidy will support businesses, charitiesand non-profits that have suffered revenue dropsby subsidizing a percentage of their expenseson a sliding scale, up to a maximum of 65 per cent of eligible expenses, until Dec. 19.

Freeland'sdepartment said a "top-up" emergency rent subsidy of 25 per cent,in addition to the 65 per cent subsidy,will be availableto organizations temporarily shut down by a mandatory public health order.

The Opposition Conservatives said these changesshould have been announced before the last program expired.

"There is no excuse for the Trudeau Liberals to leave these small businesses in the dark and announce a new program over a week after the previous program expired. Any changes or extensions to the rent relief program should have been announced before the previous program expired,"said Conservative MPs PierrePoilievre, finance critic, and Pat Kelly, small business critic, in a joint statement.

"During this pandemic, the Liberals have continuously got emergency programs wrong for small businesses and Canadian workers have been left behind. We will review this new rent relief program to ensure that small businesses are properly supported."

NDP MP Gord Johns,the party's critic for small business, said the new rent assistance program should be made retroactiveso businesses that weren't eligible last time get relief.

WATCH |Ottawa announces new rent relief program for businesses hit by COVID-19 closures

Feds give details on new rent relief program for businesses

4 years ago

Duration 1:51

Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland give reasoning for new Canada Emergency Rent Subsidy.

"The Liberals'first commercial rent program was a failure by design, and it left the majority of small business owners with no help at all," he said in a statement.

"After struggling for months, many small businesses owners are in arrears with their landlords and steeped in debt."

Wage subsidy freezing at 65 per cent

The governmentannounced in the throne speechplans to extend of thewage subsidy program which is meantto keep employees on the payroll to ensure a smooth post-pandemic economic transition until next summer.

Freeland said today thesubsidy will freeze at the current rate of up to a maximum of 65 per cent of eligible wages until Dec.19, and will not decrease on a sliding scale as previously planned.

Freeland's department said the government plans to introduce legislation to implement the new rent subsidy and the wage subsidy extension "in the near future."

The government also announced today plans to expand its pandemic-related loan program by increasing the forgivable amount.

The boost effectively increases Canada Emergency Business Account loans to $60,000 from $40,000for eligible businesses, of which a total of $20,000 is forgivable if the balance is repaid by Dec. 31, 2022, says the finance department.

According to the government's website,close to767,336 business have been approved for the program and more than $30 billion has been paid out in loans.

The new deadline to apply for the program is Dec. 31 and anattestation of the pandemic's impact on the business will be required, said Finance.

Today's announcement comes as federal officials released newmodelling figures showing the growth of caseloads continuing to accelerate across the country most rapidly in Quebec, Ontario and Alberta.

The updated projections showthat the nationalcaseload could climb to 197,830 by Oct. 17, withup to 9,800 deaths.

Caseloads rising

Ontario reported939 new cases of COVID-19the province'shighest-ever daily number of newcases.Doctors are also sounding the alarm about an increased number of COVID-19 patients being admitted to intensive care units.

WATCH | 'We will continue to be there to support the premieres: Trudeau

'We will continue to be there to support the premieres , support governments..." - Prime Minister Justin Trudeau

4 years ago

Duration 4:12

Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland address reporter questions on whether the federal government will 'step in' front of provincial premieres as Canada battles the second wave of COVID 19.

Those startling figures haveprompted Ontario Premier Doug Ford's cabinet to hold an emergency meeting to consider tighter public health measures to try to contain the spread of the coronavirus.

In Quebec, nearly allmunicipalitiesbetween the Montreal region and the Quebec City area along the St. Lawrence river are now considered pandemic "red zones".

Provincial Health Minister Christian Dubsaid new, stricter measures will soon be enacted and police checkpoints will be imposedto protect other zones, such as the Lac Saint-Jean area. Police will be checking to ensure people are travelling for essential reasons, he said.